The number of granted Tier 1 investor visas peaked in 2014 (1,172). Last year the figure stood at 350, with the highest numbers going to Chinese and Russian investors.

The scheme previously required that applicants had a UK bank account and were of "good character".

From next year, independent, regulated auditors will assess applicants' financial and business interests and check they have had control of the funds for at least two years, the Home Office said.

Successful candidates have been eligible for visas lasting three years and four months, with two-year extensions available.

In 2011, the government hoped to attract the "brightest and best" by allowing investors to bring forward the date at which they could apply for settled status. Spending £10m in the UK cut the wait to just two years.

However, three years later, the Migration Advisory Committee said the scheme brought little economic benefit for British citizens because most applicants were buying gilts to qualify - so were effectively loaning the government money, rather than investing in the UK.

The Home Office said in future there will be a provision for pooled investments, supported by the government, to back projects with a "clear economic benefit to the UK" such as supporting small and medium-sized businesses.